how much money will be spent in interest alone over the course of the 4% 30 - year mortgage described in the…
how much money will be spent in interest alone over the course of the 4% 30 - year mortgage described in the table?\nmortgage payments\nprincipal: $200,000.00\ninterest rate monthly payment\n3% $843\n4% $955\n5% $1074
Answer
Explanation:
Step1: Calculate total payments
The mortgage is for 30 years. Since there are 12 months in a year, the total number of months $n = 30\times12=360$. The monthly payment at 4% interest rate is $955$. So the total amount paid over 30 - years is $955\times360$. $955\times360 = 343800$
Step2: Calculate interest amount
The principal amount of the mortgage is $200000$. The interest amount is the total amount paid minus the principal. $I=343800 - 200000$ $I = 143800$
Answer:
$143800$